Delivering SAP MDG and CFIN global carve-outs with confidence

Carving out complex global SAP applications is no small undertaking. When a leading Swiss technology and engineering company divested one of its business areas, we were entrusted with carving out its SAP Master Data Governance (MDG) and SAP S/4HANA Central Finance (CFIN) platforms.

The initial mandate was to establish standalone company codes for the divested business across 18 local SAP ERP Central Component (ECC) systems, 44 countries, and 53 company codes, while ensuring a controlled and timely separation. With our team driving the end-to-end delivery, strong governance, clear ownership, disciplined execution, and close collaboration turned that complexity into a successful carve-out.

A highly complex application landscape

The technology landscape reflected a common reality for multinational organisations transitioning to SAP S/4HANA: a hub-and-spoke architecture with SAP MDG as the central master data backbone and SAP CFIN as the consolidated finance platform, connected to local SAP ECC systems across multiple geographies. This core landscape was complemented by global and local applications for treasury, tax, consolidation, procurement, HR, CRM, reporting, banking, and statutory requirements. Integrations spanned SAP standard interfaces, SLT, PI/PO, CPI, APIs and point-to-point connections. In such an interconnected environment, every change to MDG or CFIN could affect numerous upstream and downstream systems. Rigorous impact assessment, testing and coordination across workstreams, vendors and business functions were therefore essential.

Our winning approach

Beyond deep SAP S/4HANA Finance expertise, we brought a delivery approach designed for the pace and complexity of such carve-outs. Because time directly affected value, our priority was to guide the client through each separation milestone quickly, pragmatically, and without compromising control.

We supported the client through three major phases: “Day 0”, when the legal entity was created in systems and data; “Day 1”, when intercompany relationships transitioned to third-party relationships; and “Day 2” preparation, to get ready for the end of transitional service agreements and for full independence of the separated business.
We integrated with the global programme management office to drive financial systems separation across more than 40 countries and multiple ERP platforms. We worked closely with client teams and nominated external partners, including other consultancies and technology providers, while coordinating with the wider carve-out programme.
Milestone delivery remained the priority. We applied disciplined scope control and pragmatic problem-solving to keep financial systems separation on schedule while maintaining flexibility over how the available budget was deployed.
We challenged requirements so that only necessary activities were undertaken, while ensuring that all essential work—including testing, documentation and approvals—was completed correctly and in full.
We worked as an extension of the client team and with a two-in-a-box set up for multiple roles. By deeply understanding the organisation, its decision pathways and its key stakeholders, we resolved issues quickly and maintained delivery momentum.
We adapted plans dynamically with the client, continually reviewing progress against evolving expectations and adjusting priorities, resources, and sequencing as required.
Our onshore teams connected the workstreams and orchestrated delivery end to end, while our offshore specialists provided scalable technical execution. We performed the carve-out in groups of countries at a global scale.

More than a standard SAP ECC carve-out

Carving out SAP MDG and CFIN differed fundamentally from a conventional SAP ECC separation because both platforms sat at the intersection of master data governance and financial reporting. For MDG, we redesigned data models, governance workflows and distribution rules so that master data for the divested business could be identified, replicated and governed under the new company codes without disrupting retained operations. For CFIN, we created new company codes, adjusted SAP Landscape Transformation Replication Server (SLT) replication, remapped cost objects, and redesigned reporting structures to segregate divested data while maintaining postings from local ECC systems. Success depended on synchronising SAP and non-SAP integrations: each interface was assessed, redesigned, regression-tested and cut over in sequence to deliver a stable, auditable separation.

Built on trust, delivered through collaboration. Strong governance, clear ownership, disciplined execution and collaboration enabled a controlled, high-quality, and timely separation.

Partnering for precision: the data migration challenge

Once governance and separation principles were in place, the focus shifted to executing the migration. At this stage, the expertise and tooling of a specialist data migration partner became critical.

In this complex SAP carve-out, the data migration partner translated the separation design into operational reality. Specialist SAP data transformation capabilities enabled the selective extraction, transformation and migration of business data while preserving consistency across interconnected systems. This flexibility was particularly valuable because only selected legal entities, business units and organisational structures had to be separated from the larger SAP environment.

The approach depended on a clearly defined and formally approved migration blueprint. Developed jointly by the project teams and migration partner, it set out the scope, transformation rules and organisational changes required for the future-state operating model. Combining this blueprint with specialist migration expertise and proven tooling reduced complexity, limited business disruption and supported a controlled, auditable separation.

Industrialising balance-sheet separation

In this project, balance-sheet separation was a finance governance challenge, not simply a data migration task. Our guiding principle was clear: assets and liabilities attributable to the carved-out business transferred to the new company; ambiguous items remained unless legal, tax or commercial stakeholders agreed otherwise.

Execution required discipline: we locked the scope, confirmed company codes, defined authoritative master data, agreed target processes, classified each balance-sheet account, and rehearsed migration and validation.

We structured the scope into three categories: “CFIN migration” for centrally managed items, including Accounts Payable (AP) and Accounts Receivable (AR) open items; “source ERP migration” for ECC-owned fixed assets, inventory and general ledger balances; and “no migration” for selected bank, VAT and withholding tax history.

The key success factor was the industrialised delivery: one global playbook, local validation, group-based rollout, robust testing and controller-led reconciliation.

The right partner paves the way for your successful carve-out

Carve-out programmes are defined by speed: demanding timelines must be met without compromising quality or control. Choosing a trusted partner is therefore critical to achieving the separation objectives. We bring four capabilities that help clients deliver with confidence.

Clear methodology and governance
We define a holistic, fit-for-purpose methodology and governance framework aligned with the project scope, establishing structure, decision rights and accountability from the outset.

Industrialisation
For multi-country, multi-system organisations, we industrialise delivery through standardised templates, accelerators and guidelines, enabling speed without sacrificing consistency.

Collaboration
Carve-outs are complex, cross-functional programmes. We create close collaboration across business, IT, Finance and external partners, aligning stakeholders around shared outcomes and coordinated execution.

Adaptability
We listen to our clients, understand their specific priorities and adapt the delivery model accordingly, translating their objectives into shared goals and practical actions.

Your next carve-out, delivered with peace of mind

Carve-outs leave little room for error. Timelines are compressed, the stakes are high and SAP landscapes are increasingly interconnected.

This programme demonstrated that, with the right methodology, people and delivery partner, even highly complex SAP MDG and CFIN separations can be completed on time and within budget while maintaining business continuity.

Whether your organisation is preparing for a divestiture, a complex SAP separation or a parallel S/4HANA transformation, we bring the experience, accelerators, and global delivery network required to turn the strategy into a controlled outcome.

Contact our team to discuss how we can support your carve-out journey.